A former hedge fund executive has been sentenced to one year and one day in prison for his role in the Thomas Petters Ponzi scheme.

Harold Katz pleaded guilty last year to conspiracy to commit wire fraud. The vice president of finance at hedge fund Lancelot Investment Management was accused of crafting the bogus documents used by Petters and Lancelot founder Gregory Bell to fool investors into believing that Petters was making good on his loan payments. He also allegedly designed the "round-trip" wire transfer payments to create the impression that Petters was, in fact, paying.

Bell was sentenced to six years in prison last week. Petters, who was convicted of running a $3.65 billion fraud, was sentenced to 50 years in prison following his conviction last year.

Katz had faced up to five years in prison.

"I made a colossal error in judgment," Katz said at his sentencing Friday. "I hope I can use this horrific experience to help others not make the same mistakes as I have."